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In this case they are still withholding, but the withholding doesn't cover enough because of AMT and other reasons.
by timcederman 10y ago
In this case they are still withholding, but the withholding doesn't cover enough because of AMT and other reasons.
- cloudjacker 10y agoyes the illiquid RSU dilemma: if the valuation of the RSUs have gone up by the time they vest, then you owe a boat load of tax but can't liquidate the RSUs to pay said tax.
- bogomipz 10y agoI am curious what is the purpose of this withholding strategy then? I am not familiar with this. Doesn't sound great to me, at least with a quarterly vesting schedule you can generally go and sell them on the secondary market.
- timcederman 10y agoBecause it's impossible to know each employee's tax situation, and better to withhold too little than too much. In most cases it works out, but early employees and executives can easily be affected.
- usaar333 10y agoWhen has this failed? FB for instance withheld at nearly 45% (http://dealbook.nytimes.com/2012/09/10/why-facebook-is-paying-the-tax-tab-on-employee-compensation/?_r=0); http://dealbook.nytimes.com/2012/09/10/why-facebook-is-payin... is this not enough or are some companies underwithholding?